Neutrl Halts NUSD Redemptions Over Undisclosed Reserve Issue

Neutrl, a decentralized finance (DeFi) protocol, has suspended minting and redemptions for its NUSD synthetic dollar due to unspecified circumstances affecting protocol reserves.

The suspension occurred on Thursday, with Neutrl pausing other protocol functions on legal advice while it assesses the impact. The protocol did not identify the affected asset or counterparty, nor provide a timeline for resuming operations.

NUSD had a market capitalization of about $53.6 million on Friday, down 18.4% over 30 days. Monthly transfer volume fell 72.4% to $71.4 million, according to RWA.xyz.